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HomeMy WebLinkAboutApproving the Assignment of Economic Development Bond Financing South Bend Tool & Die Co IncORDINANCE No 7278 -83 Passed by the Common Council of the City of South Bend, Indiana V Attest: December 5, 19 83 IRENE K. GAMMON City Clerk Presented by me to the Mayor of the City of South Bend, Indiana w- TW-4 I I] 01WAMMM . of Common Council IRENE K. GAMMON Approved and signed by me k (. �9 '�' 3 Clerk BILL NO. ORDINANCE NO. 7.2ff-f_3 AN ORDINANCE APPROVING THE ASSIGNMENT OF ECONOMIC DEVELOPMENT BOND FINANCING BY SOUTH BEND TOOL AND DIE CO., INC. TO ART IRON, INC. RELATING TO THE SOUTH BEND TOOL AND DIE COMPANY, INC. PROJECT WHEREAS, the City of South Bend (the "City ") is a municipal corporation and political subdivision of the State of Indiana, and by virtue of Title 35, Article 7, Chapter 12 of the Indiana Code, as amended (the "Act ") is authorized and empowered to adopt this Ordinance and to carry out its provi- sions; and WHEREAS, the City of South Bend, Indiana issued its Economic Development Revenue Bonds ( "Bonds ") for the South Bend Tool and Die Co., Inc. Project ( "Project ") in the original principal amount of Six Hundred Thousand Dollars ($600,000.00) which Bonds were dated January 30, 1980, and the proceeds of such Bonds were used to construct and equip economic develop- ment facilities that were leased to South Bend Fabricating Co., Inc., an Indiana corporation, for manufacturing purposes re- sulting in increased employment in South Bend, Indiana; and WHEREAS, South Bend Tool and Die Co., Inc., ( "Devel- oper"), desires to assign and convey its interest in the Pro- ject to Art Iron, Inc., an Ohio corporation; and WHEREAS, the South Bend Tool and Die Co., Inc., and the original guarantors of the Bonds will no longer remain liable to the City of South Bend and holders of the Economic Development Revenue Bonds during the term of such Bonds, but they shall be replaced by Art Iron, Inc., as the responsible party under the bonds; and WHEREAS, the trustee for the Bonds and the owner of the Bonds, American Valley Bank and Trust Company, South Bend, Indiana, has consented to the assignment, sale and conveyance of the Project, NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA THAT: This Council approves the request of South Bend Tool and Die Co., Inc. to assign, transfer and convey its interest in the Project to Art Iron, Inc. with the understanding that Art Iron, Inc. shall assume the obligations of the Developer and shall become primarily liable for the obligations under the Loan Agreememt and the Indenture; and BE IT FURTHER ORDAINED THAT: This Council consents to the sale, assignment and conveyance of the Project from South Bend Tool and Die Co., Inc. to Art Iron, Inc. with the under- standing that Art Iron, Inc. shall assume the obligations of South Bend Tool and Die Co., Inc. and the Guarantor under the Loan Agreement and Indenture of Trust; and BE IT FURTHER ORDAINED THAT: This Council finds that the sale, assignment and conveyance of the Project from South Bend Tool and Die Co., Inc. to Art Iron, Inc. will be of bene- fit to the health and welfare of the City and its citizens; and BE IT FURTHER ORDAINED THAT: This Council finds that the sale, assignment and conveyance of the Project from South CWZ Bend Tool and Die Co., Inc. to Art Iron, Inc. complies with the purposes and provisions of the Act; and BE IT FURTHER ORDAINED THAT: The Mayor and City Clerk are authorized to execute all documents necessary to consummate the assignments and conveyances described herein, including the First Amendment to Lease Agreement and the First Amendment of Indenture of Trust; and BE IT FURTHER ORDAINED THAT: The provisions of this ordinance and the aforementioned documents shall constitute a contract binding between the City and the holders of said Eco- nomic Development Revenue Bonds, and after the sale, assignment and conveyance of the Project this Ordinance shall not be re- pealed or amended in any respect which would adversely affect the rights of said holders so long as any of the principal of said Economic Development Revenue Bonds or the interest thereon remains unpaid. BE IT FURTHER ORDAINED THAT: All ordinances or parts of ordinances in conflict herewith are hereby repealed. BE IT FURTHER ORDAINED THAT: This Ordinance shall be in full force and effect from and after its passage by this Council and its signature by the Member of the Common Council. Dated this day of , 1983. Member, Comm n Council RE ERE, -D CJ -3- FILED ID CLEF'S OFFICE NOV 3 a 1983 Irene Gammon CITY CLERK, SOUTH BEND, IND. November 30, 1983 Mrs. Irene K. Gammon, City Clerk 4th Floor, County -City Building South Bend, IN 46601 Re: Assignment of Bond Financing and Sale of Economic Development Facility from South Bend Tool and Die Co., Inc., an Indiana corporation, to Art Iron, Inc., an Ohio corporation Dear Mrs. Gammon: The South Bend Economic Development Commission at its meeting of December 2, 1983, shall consider approval of the sale of the economic development facility financed by City of South Bend Economic Development revenue bonds dated January 30, 1980, in the original principal amount of $600,000 for the South Bend Tool and Die Co., Inc. Project located on High Court near the intersection of Sample and High Streets, South Bend, Indiana. The building which was formerly occupied by South Bend Fabricating will be sold to Art Iron, Inc., an Ohio corporation, for use as a metal service center. Art Iron anticipates employing 8 to 10 people within the first year of occupancy of the building. Enclosed is a copy of the resolution that has been filed with the South Bend Economic Development Commission. Also enclosed BARNES & THORNBURG SIXTH FLOOR,IST SOURCE BANK CENTER OF COUNSEL JERRY P. BELKNAP ROBERT P. JOHNSTONE 100 NORTH MICHIGAN ALAN W. BOYD LESTER M. PONDER ROBERT S.ASHBY LOUIS A. HIGH MARK TOM CHARLES HUSTON JAMES A. SOUTH BEND INDIANA 46601 CHARLES M. WELLS DONALD D. EVENSON JOHN W. HOUGHTON STRAIN GEORGE H. BAKER THOMAS M. SCANLON THOMAS P.JENKINS WARREN E. McGILL TONI SUE AX JAMES F.THORNBURG EVERET F. SMITH WARREN A. DEAHL R. MICHAEL PARKER FREDERIC D. ANDERSON PHILIP J. FACCENDA JOHN L.CAREY' NELSON J.VOGEL.JR. LESTER IRONS PERRY PALAN GEORGE J. ZAZAS ROGER W. BENKO TELEPHONE TELECOPIER THOMAS L. MURRAY JOHN R. HARMAN DAVID R' MELTON STEPHEN W. LEE JAMES B. LOOTENS HOWARD J. COFIELD BRIAN J. LAKE BRYAN G.TABLER (219) 233-1171 (219) 237-1125 DAVID A. HAIST NANCY L. MARSHALL RICHARD M.TRECKELO DANIEL H. FITZGIBBON C. STANLEY C. FICKLE ANNE N. DePREZ .PREZ WILLIAM J. REINKE STEPHEN K. SMITH WILLIAM I RICHARD N RICHARD E. DEER RICHARD W. MORGAN A. JAMES RICHARDSON EVICTOR INDIANO EDWARD J. GRAY MICHAEL R. FRUEHWALD TWX 810 -341 -3427 B &T LAW IND ERNEST J.SZARWARK ALAN A. LEVIN ROBERT E. HIGHFIELD EDWARD 0. DELANEY PAUL E. BECHER FRANK SULLIVAN,JR. DANIEL W. RUDY CYM H. LOWELL JAMES E. MAHONEY KENNETH R. PETRINI JACK C. DUNFEE,JR. JERRY E. HYLAND DAVID M. POWLEN KENNETH H.INSKEEP HENRY J. PRICE SAMUEL S.THOMPSON 1313 MERCHANTS BANK BUILDING EDWIN B. WAINSCOTT MICHAEL P. LUCAS KATHLEEN K. BRICKLEY ALAN K. MILLS HERBERT C.SNYDERI JR. JAMES A. Mc DERMOTT BRUCE R.KARR DONALD E.KNEBEL INDIANAPOLIS, INDIANA 46204 DAVID L.SWIDER JOSEPH W. REBONE SHIDELER WAYNE C. KREUSCHER (317) 638 -1313 RENEE R. MAWHINNEY RYAN M. FOU NTAIN ROBERYA. ROBERT H. REYNOLDS KRISTIN G. FRUEHWALD MARCUS B. CHANDLER EDWARD A. KEIRN CHARLES E. BRUESS DANIEL W. McGILL FIRST NATIONAL BANK BUILDING DOUGLAS P. LONG STEPHEN L. SMITH TIMOTHY J. RIFFLE CAROL C. KAESEBIER WILLIAM R. BAN CRO BRUCE R. BAN CROFT KENT EL E.AGNESS N MICHAEL R. CON NER 301 SOUTH MAIN STREET, SUITE 305 JOHN M. KYLE III TIMOTHY T. CASADY JOHN T. MULVIHILL CLAUDIA V.SWHIER ELK HARTS INDIANA 46516 JAMES A. CO LES JANET O. NEUENSCHWANDER FRANKLIN A. MORSE II ROBERT K. BELLAMY (219) 293 -0681 MILDR ED L.CALHOUN ANTHONY NIMMO STEPHEN A. SEALL CATHERINE L. BRIDGE JOHN C. ROTH HAAR STEVEN W.THORNTON GORDON S. ESLICK RICHARD D. CONARD DOUGLAS K. DIETERLY T. RICHARD RI NEY RICHARD E.STEINBRONN LARRY J. STROBLE SUITE 500 SANDRA J. LONG JOHN C. BINKLEY JOHN A. BURGESS MICHAEL ROSIELLO 1815 H STREETS N. W. DOUGLAS E.STARKEY DOUGLAS D. SMALL WASHINGTON, D. C. 20006 ROBERT J. SMITH,JR. PAULA M. TAYLOR (202) 955 -4500 CONNIE M. MCKEAN BRUCE B. MARR HOWARD E.KOCHELL RONALD E. CHRISTIAN JEFFREY J.TONNER MARK C. KRCMARIC GREGORY L. KELLY PATRICK J. O'NEIL MARK R.WENZEL • ADMITTED IN D. C. BUT NOT INDIANA TO CALL WRITER DIRECT November 30, 1983 Mrs. Irene K. Gammon, City Clerk 4th Floor, County -City Building South Bend, IN 46601 Re: Assignment of Bond Financing and Sale of Economic Development Facility from South Bend Tool and Die Co., Inc., an Indiana corporation, to Art Iron, Inc., an Ohio corporation Dear Mrs. Gammon: The South Bend Economic Development Commission at its meeting of December 2, 1983, shall consider approval of the sale of the economic development facility financed by City of South Bend Economic Development revenue bonds dated January 30, 1980, in the original principal amount of $600,000 for the South Bend Tool and Die Co., Inc. Project located on High Court near the intersection of Sample and High Streets, South Bend, Indiana. The building which was formerly occupied by South Bend Fabricating will be sold to Art Iron, Inc., an Ohio corporation, for use as a metal service center. Art Iron anticipates employing 8 to 10 people within the first year of occupancy of the building. Enclosed is a copy of the resolution that has been filed with the South Bend Economic Development Commission. Also enclosed Mrs. Irene K. Gammon -2- November 30, 1983 is a form of ordinance we are requesting the Common Council pass authorizing the sale of the facility and transfer of the bond fi- nancing. Very truly yours, BARNE;rd THORNBURG Rich W. Morga RWM:jj Encls. cc: Kenneth P. Fedder, Esq. BARNES & THORNBURG RESOLUTION OF THE SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION RELATING TO SOUTH BEND TOOL AND DIE CO., INC. PROJECT WHEREAS, the City of South Bend, Indiana issued its Economic, Development Revenue Bonds, ( "Bonds "), for the South Bend Tool and Die Co., Inc. Project, ( "Project "), in the original principal amount of Six Hundred Thousand Dollars ($600,000.00) which Bonds were dated January 30, 1980, and the proceeds of such Bonds were used to construct and equip economic development facilities that were leased to South Bend Fabricating Co., Inc., an Indiana corporation, for manufacturing purposes resulting in increased employment in South Bend, Indiana; and WHEREAS, South Bend Tool and Die Co., Inc., ( "Developer "), desires to assign and convey its interest in the Project to Art Iron, Inc., an Ohio corporation; and WHEREAS, the South Bend Tool and Die Co., Inc., and the original guarantors of the Bonds will no longer remain liable to the City of South Bend and holders of the Economic Development Revenue Bonds during the term of such Bonds but they shall be replaced by Art Iron, Inc., as the responsible party under the bonds; and WHEREAS, the trustee for the Bonds and the owner of the Bonds, American Valley Bank and Trust Company, South Bend, Indiana has consented to the assignment, sale and conveyance of the Project. NOW, THEREFORE, BE IT RESOLVED, that the South Bend Economic Development Commission approve the request of.South Bend Tool and Die Co., Inc. to assign, transfer and convev its interest in the Project to Art Iron, Inc. with the understanding that Art Iron, Inc. shall assume the obligations of the Developer and shall become primarily liable for the obligations under the Loan Agreement and the Indenture; and BE IT FURTHER RESOLVED, that the South Bend Economic Development Commission consents to the sale, assignment and conveyance of the Project from South Bend Tool and Die Co., Inc. to Art Iron, Inc. with the understanding that Art Iron, Inc. shall assume the obligations of South Bend Tool and Die Co., Inc. and the Guarantor under the Loan Agreement and Indenture of Trust; and BE IT FURTHER RESOLVED, that the Mayor and City Clerk are authorized to execute all documents necessary to consummate the assignments and conveyances described herein, including the First Amendment to Lease Agreement and the First Amendment of Indenture of Trust. DATED THIS 2nd day of December, 1983. SOUTH BEND ECONOMIC DEVELOPMENT COMMISSION By Jerry Hammes, President By Walter M. Szymkowiak, Vice President By Walter A. Mucha, Secretary -2-